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Privatization of Bali Airport Indefinitely Delayed

Government Says Other Sectors of the Economy Have Higher Priority in Privatization Process.

Bali News:
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Original plans by the Government to privatize Bali's Ngurah Rai and Lombok's Selaparang airports in 2003 have been put on an indefinite hold, while the National Ministry for State Owned Enterprises focuses its attention first on the sale of other state-owned assets. According to the Ministry, the Government is at present fully occupied with the privatization of Bank Rakyat Indonesia, National Gas Company (PGN), and Indocement - meaning the airport privatization will have to wait.

Plan to privatize the non-aeronautical aspects of Bali's and Lombok's airport had already progressed to the stage of socializing the sale to the general public, hiring financial and legal advisors, and making detailed valuations of the items to be offered for private ownership when the Ministry decided that insufficient time remained to consult and obtain the consent of the People's Consultative Assembly (MPR), as required under law.

The Government – badly in need of additional cash – had set for itself a target of Rp. 8 trillion (approximately US$ 941.2 million) in sales proceeds during the current year from state-owned enterprises, including banks and utilities.

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